EG Group is to acquire 762 US forecourt convenience sites in a $2.15bn deal with The Kroger Co.
Kroger’s convenience store business operates in 18 states and includes 66 franchise operations. The stores employ 11,000 associates and operate under names: Turkey Hill, Loaf ’N Jug, Kwik Shop, Tom Thumb and Quik Stop. Kroger’s convenience store business generated revenue of $4bn, including selling 1.2 billion gallons of fuel, in 2016.
As part of the transaction, EG Group will establish its North American headquarters in Ohio and continue to operate stores under its established brands.
EG Group currently owns and manages circa 2,600 sites in the UK, France, The Netherlands, Belgium, Luxembourg and Italy, employing over 12,500 staff across leading retail brands including Esso, BP, Shell, Carrefour, Spar, Starbucks, Burger King, KFC, Greggs, Pomme de Pain and Subway.
At the end of 2017, the business bought around 1,000 petrol forecourts from Esso in Germany which will be transferred and integrated into the existing network in Q4, 2018. With the inclusion of the Kroger assets, EG Group will own and operate around 4,400 sites across Europe and the US.
North America is an important strategic market for the EG Group and it has previously evaluated a number of potential acquisitions, where it believes its unique and innovative business model would be successful.